Answer:
C) Debit Bad Debts Expense $21,300; credit Allowance for Doubtful Accounts $21,300.
Assume you have $1,000,000 to invest Current spot rate of the pound = $1.30 90 day forward rate of pound = $1.28 3 month deposit rate in US = 3% 3 month deposit rate in Great Britain = 4% If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S.dollars you will have after 90 days? Show your work.
Answer:
$1,024,000
Explanation:
with your $1,000,000 you can currently buy $1,000,000 / $1.3 = £769,231
then you invest your £769,231 and receive = £769,231 x (1 + 4%) = £800,000
since the forward rate for three months = $1.28, then at the end of the three months you will have £800,000 x $1.28 = $1,024,000
if you simply invested your money in the US, you would earned more money ? $1,000,000 x (1 + 3%) = $1,030,000. You lower gains are the result of the British pound depreciating against the dollar.
Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.06 direct labor-hours. The direct labor rate is $8.00 per direct labor-hour. The production budget calls for producing 5,300 units in June and 5,800 units in July. Required: Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)
Answer:
Results are below.
Explanation:
Giving the following information:
Each unit of output requires 0.06 direct labor-hours.
The direct labor rate is $8.00 per direct labor-hour.
The production budget calls for producing 5,300 units in June and 5,800 units in July.
Direct labor budget June:
Direct labor hours= 5,300*0.06= 318
Direct labor cost= 318*8= $2,544
Direct labor budget July:
Direct labor hours= 5,800*0.06= 348
Direct labor cost= 348*8= $2,784
For a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock, calculate: a. The expected return. b. The volatility (standard deviation).
Full question attached
Answer:
A. 8.6%
B. 14.09%
Explanation:
A) given that portfolio weights =50% each
Expected return= w*r+w*r where w is portfolio weight and r is return on each asset:
=0.50*0.078+0.50*0.094= 0.086
=8.6%
B) The volatility (standard deviation)
=√w²*std²+w²*std²+2*w*w*std*std*corr
=√0.50²*0.157²+0.50²*0.203²+2*0.50*0.50*0.157*0.203*0.213
=0.1409
=14.09%
A firm facing a price of $15 in a perfectly competitive market decides to produce 100 widgets. If its marginal cost of producing the last widget is $12 and it is seeking to maximize profit, the firm should
Answer:
Produce more widgets.
Explanation:
Given the price charge by the competitive firm is = $15
The unit produced = 100
The marginal cost of the last unit = $12
The firm should produce more widget because in the competitive market the firm charge the price that is equal to MC. Moreover, in the given question the price is greater than the marginal cost. Therefore, the firm should produce more widgets in order to reach the condition “P=MC”.
Colby & Company bonds pay semi-annual interest of $50. They mature in 15 years and have a par value of $1,000. The market rate of interest is 8%. The market value of Colby Bonds is: (round to nearest dollar)
Answer:
Price of bond = $ 1,172.92
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Colby & Company can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment = 50
Semi-annual yield = 8%/2 = 4% per six months
Total period to maturity (in months)
= (2 × 15) = 30 periods
PV of interest =
50 × (1- (1+0.04^(-30)/0.04)= 864.60
Step 2
PV of Redemption Value
= 1,000 × (1.04)^(-30) =308.318
Step 3:
Price of bond
= 864.60 + 308.318 = $1,172.92
Price of bond = $ 1,172.92
Assume that Cane expects to produce and sell 106,000 Betas during the current year. One of Cane’s sales representatives has found a new customer who is willing to buy 4,000 additional Betas for a price of $74 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?
Answer:
The first part of the question is missing, so I looked for a similar question to fill in the blanks:
Relevant production costs per unit:
Direct material $30 Direct labor $20 Variable manufacturing overhead $7 Variable selling expenses $12 Total relevant costs per unit $69incremental revenue if special order is accepted = 4,000 x $74 = $296,000
incremental costs if special order is accepted = 4,000 x $69 = $276,000
financial advantage of accepting special order = $296,000 - $276,000 = $20,000
If the special order is accepted, operating profits will increase by $20,000
Karen wants to create a visual aid to compare 1st, 2nd, 3rd and 4th quarter sales. Which
visual aid would she use?
Pie chart
Bar graph
Picture
Line graph
Answer:
Pie Chart
Explanation:
A pie chart is a statistical graphic chart in a shape of a pie. Usually, it is divided into part, or slices if you may, to show and explain numerical proportion.
In pie charts, the length of the arc of each slice or part, is usually proportional to the quantity it represents.
Pie charts are generally used to show percentage or proportional data. Normally, if percentage is used, the percentage value is marked or written near the part or slice it represents.
Answer:
c
Explanation:
Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: Activity Cost Pools Activity Rate Processing customer orders $96.72 per customer order Assembling products $3.43 per assembly hour Setting up batches $53.23 per batch Last year, Product F76D involved 5 customer orders, 528 assembly hours, and 22 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system
Answer:
Total allocated overhead= $3,465.71
Explanation:
Giving the following information:
Processing customer orders $96.72 per customer order
Assembling products $3.43 per assembly hour
Setting up batches $53.23 per batch
Product F76D:
5 customer orders
528 assembly hours
22 batches
To assign overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product F76D:
Processing= 96.72*5= $483.6
Assembling= 3.43*528= 1,811.04
Setting up batches= 53.23*22= 1.171.07
Total allocated overhead= $3,465.71
Compute the following probabilities:
a. If Y is distributed N (-8,9), Pr (Y≤-12) = —— . (Round your response to four decimal places.)
b. If Y is distributed N (-4,9), Pr (Y>-1) = ——. (Round your response to four decimal places.)
c. If Y is distributed N (40,25), Pr (34≤Y≤44) = ——. (Round your response to four decimal places.)
Answer: a. 0.3300 b. 0.3707 c. 0.1584
Explanation:
If X is distributed N([tex]\mu,\sigma^2[/tex]) [Normal distribution], then Z-score = [tex]\dfrac{X-\mu}{\sigma}[/tex] .
a. If Y is distributed N (-8,9),
Pr (Y≤-12) [tex]=P(\dfrac{Y-\mu}{\sigma}\leq \dfrac{-12-(-8)}{\sqrt{9}})[/tex]
[tex]=P(Z\leq -1.33)=1-P(Z<1.33)\\\\=1- 0.9082\ \ \ [\text{By z-table}]\\\\= 0.0917[/tex]
b. If Y is distributed N (-4,9),
Pr (Y>-1) =[tex]=P(\dfrac{Y-\mu}{\sigma}>\dfrac{-1-(-4)}{3})[/tex]
[tex]=P(Z>1)=1-P(Z<1)\\\\=1-0.8413\ \ \ [\text{By z-table}]\\\\=0.1587[/tex]
c. If Y is distributed N (40,25),
Pr (34≤Y≤44) = [tex]P(\dfrac{34-40}{5}<\dfrac{Y-\mu}{\sigma}<\dfrac{44-40}{5})[/tex]
[tex]P(-1.2<Z<0.8)=P(Z<0.8)-P(Z<-1.2)\\\\=P(Z<0.8)-(1-P(Z<1.2))\\\\=0.7881-(1-0.8849)\ \ \ [\text{By z-table}]\\\\=0.6730[/tex]
Assume that the substitution effect is large relative to the income effect. If a tax reform is designed to increase saving, what does it do to the interest rate and spending on capital goods?
a.
It increases the interest rate and decreases spending on capital goods.
b.
It increases the interest rate and increases spending on capital goods.
c.
It decreases the interest rate and increases spending on capital goods.
d.
It decreases the interest rate and decreases spending on capital goods.
Answer:
a.
It increases the interest rate and decreases spending on capital goods.
Explanation:
Tax reform is a process through which most government controls the spending on capital goods and encourage local goods purchases. This is accomplished through increase on the taxes on those goods in such a way that, it becomes highly discouraging to spend such amount on it thereby encouraging savings.
Dirt is not dirt when it comes to baseball fields.About two-thirds of the pro baseball fields got their dirt from a dirt farm in New Jersey called Partac Peat.The company markets a secret mix for the infield (resilient),the warning track (extra crunchy),and the pitcher's mounds (firm).Mounds come in red,brown,orange,and gray colours.Roger Bossard,the White Sox head groundskeeper,scouted nationwide for dirt before settling on the mix provided by Partac Peat.(He uses sand under the grassy areas of the playing field. )
-Refer to Baseball Dirt.Some of the dirt sold by Partac Peat goes to make clay tennis court surfaces.As the number of people playing tennis increases,so does the demand for new clay courts and,therefore,the demand for Partac Peat clay.This occurs because the demand for Partac Peat is which of the following?
A) inelastic
B) intangible
C) heterogeneous
D) derived
Answer: D) derived
Explanation:
Derived demand refers to a situation where the demand for a good or service is as a result of the demand in another good or service. For example, if the demand for mobile phones increases, the demand for lithium batteries will increase as well.
In the example, Partac Peat clay demand increases as a result of an increase in the demand for tennis playing therefore it is a derived demand based on the demand for the tennis.
The combo box (form control) option in macros can be used to substitute for ___ when doing scenario analysis.
Answer:
Data validation
Explanation:
Here the combo box determines the validating the data and also provides the data list that is to be chosen from the given set of the data. Now if can be chosen from the drop-down list with respect to combo box also the motive would remain the same as it comes under data validation option
Hence, the correct option is data validation
Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today
Answer:
The bond is worth $651.59 today
Explanation:
FV = $1000
N = 8
I/Y = 5.5%
Present Value = ?
PV = FV*(1+r)^(-n)
PV = $1000 * (1 + 0.055)^-8
PV = $1000 * (1.055)^-8
PV = $1000 * 0.651599
PV = $651.59
An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 10% capital gain. How much was received in dividend income during the year
Answer:
Dividend per share = $2
Explanation:
The total yield or return on a stock consists of two components namely dividend yield and capital gains yield.
Total yield or return = Dividend yield + Capital gains yield
If the total return is 15% while the capital gains yield was 10%, the dividend yield on the stock will be,
0.15 = Dividend yield + 0.1
0.15 - 0.1 = Dividend Yield
Dividend Yield = 0.05 or 5%
Thus, dividend income per share will be,
0.05 = Dividend per share / 40
0.05 * 40 = Dividend per share
Dividend per share = $2
Which of the following strategies yields positive profits when the stock price is low but not when the stock price is high?
a. Straddle
b. Bullish spread
c. Protective put
d. bearish spread
Answer: d. bearish spread
Explanation:
With a bearish spread, the investor believes the market to be heading for a price decline in the stock of interest. They will therefore purchase a put option on it. However, they also want to reduce the cost of the transaction so what they will do is to simultaneously buy 2 put options for the same asset for the same date of expiration but with different exercise prices.
If the price of the stock then falls, they will make a profit on both aand reduce costs.
Which of the following organizations does notfollow the AICPA's Not-for-Profit Guide?
A) Political parties.
B) Voluntary health and welfare organizations.
C) City libraries.
D) Private foundations.
Answer: City Libraries
Explanation;
The American Institute of CPAs Not-for-Profit Guide is meant to help Not-for-Profit organizations prepare their financial statements in such a way that they can incorporate the unique aspects of their organization.
Not-for-Profit organizations are private in nature so this guide is mostly for private organizations. City Libraries on the other hand are Government owned and as such will use Government type accounting methods not the AICPA's Not-for-Profit Guide.
. The disadvantages of a centralized organizational structure include A. lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative. B. a loss of top management control. C. putting too much decision making authority in the hands of lower-level company personnel. D. making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made. E. impeding cross-unit coordination and capture of strategic fits.
Answer:
A. lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative.
Explanation:
An organization with a centralized structure is one whose decision-making process is restricted to professionals at the top of the hierarchy, that is, only the leader of the organization is the one who will make the decisions inherent to the business.
This type of structure usually exists in organizations whose businesses are less flexible and need greater control and coordination of organizational processes.
Therefore, there are some disadvantages of centralization, one of which is described in the alternative A: lengthening response times and discouraging low-level managers and ordinary employees from exercising the initiative.
Because as the leader may be far from the problem to be decided, it will take more time to make the necessary judgments for decision making. Employees are also less encouraged to contribute with innovative solutions, since the decision-making process is only in the hands of the leader of the company.
The following are transactions and events of the general fund of Sycamore Hospital, a not-for-profit entity, for the 20X6 fiscal year ending December 31, 20X6.
1. Provided a total of $6,600,000 in patient services.
2. Had total operating expenses of $5,998,000, as follows:
Nursing services $2,100,000
Other professional expenses 1,280,000
Fiscal services 230,000
General services 1,520,000
Bad debts 138,000
Administration 250,000
Depreciation 480,000
Accounts credited for operating expenses other than depreciation:
Cash $4,794,000
Allowance for Uncollectibles 138,000
Accounts Payable 213,000
Inventories 210,000
Donated Services 163,000
3. Allowed contractual adjustments of $210,000 as deductions from gross patient revenue.
4. Received a transfer of $200,000 from specific-purpose funds for payment of approved operating costs in accordance with the terms of the restricted gift.
5. Received a transfer of $230,000 from the temporarily restricted plant fund to purchase new equipment for the hospital.
6. Received $150,000 of unrestricted gifts.
7. Collected accounts receivable except for $65,000 written off.
8. Reported a $90,000 increase in the market value of the investment securities portfolio of the general fund from the beginning of the period. The board designated this entire income for other than current operations.
Required:
Prepare journal entrie.
Answer:
1. Dr Accounts receivable 6,600,000
Cr Patient services revenue 6,600,000
2. Dr Nursing services expense 2,100,000
Dr Other professional services expense 1,280,000
Dr Fiscal services expense 230,000
Dr General services expense1,520,000
Dr Bad debts expense 138,000
Dr Administration expense250,000
Dr Depreciation expense 480,000
Cr Cash 4,794,000
Cr Allowance for uncollectibles 138,000
Cr Accumulated depreciation 480,000
Cr Accounts payable 213,000
Cr Inventory 210,000
Cr Donated services 163,000
3. Dr Patient services revenue210,000
Cr Accounts receivable210,000
4. Dr Cash 200,000
Cr Net assets released from program use restrictions 200,000
5. Dr Cash 230,000
Cr Net assets released from equipment acquisition restriction 230,000
6.Dr Cash 150,000
Cr Contributions-Unrestricted 150,000
7. Dr Cash 6,455,000
Cr Allowance for uncollectibles 65,000
Cr Accounts receivable 6,390,000
8. Dr Investment securities 90,000
Cr Unrealized holding gain on investment securities 90,000
Explanation:
Preparation of the Journal entries for Sycamore Hospital.
1. Since we were told that the company Provided a total of the amount of $6,600,000 in patient services this means that the transaction will be recorded as:
Dr Accounts receivable 6,600,000
Cr Patient services revenue 6,600,000
2. Based on the information given we were told that the company had total operating expenses of the amount of $5,998,000 which means that the transaction will be recorded as:
Dr Nursing services expense 2,100,000
Dr Other professional services expense 1,280,000
Dr Fiscal services expense 230,000
Dr General services expense1,520,000
Dr Bad debts expense 138,000
Dr Administration expense250,000
Dr Depreciation expense 480,000
Cr Cash 4,794,000
Cr Allowance for uncollectibles 138,000
Cr Accumulated depreciation 480,000
Cr Accounts payable 213,000
Cr Inventory 210,000
Cr Donated services 163,000
3. Since we were told that Allowed contractual adjustments was the amount of $210,000 which is a deductions from gross patient revenue, which means that the transaction will be recorded as:
Dr Patient services revenue210,000
Cr Accounts receivable210,000
4. Based on the information given we were told that the company received a transfer of the amount of $200,000 for the payment of approved operating costs which means that the transaction will be recorded as:
Dr Cash 200,000
Cr Net assets released from program use restrictions 200,000
5. Since the company received a transfer of the amount of $230,000 from the temporarily restricted plant fund in order to purchase new equipment for the hospital, this means that the transaction will be recorded as:
Dr Cash 230,000
Cr Net assets released from equipment acquisition restriction 230,000
6.Since the company received the amount of $150,000 of unrestricted gifts, this means that the transaction will be recorded as;
Dr Cash 150,000
Cr Contributions-Unrestricted 150,000
7. Since the company collected accounts receivable except for the amount of $65,000 which was written off, this means that the transaction will be recorded as:
Dr Cash 6,455,000
(6,390,000 +65,000)
Cr Allowance for uncollectibles 65,000
Cr Accounts receivable 6,390,000
(6,600,000-210,000)
8. Based on the information given we were told that the company reported the amount of $90,000 as an increase in the market value, this means that the transaction will be recorded as:
Dr Investment securities 90,000
Cr Unrealized holding gain on investment securities 90,000
Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
A. A Swiss bank buys bonds issued by a U.S. company.
B. A French restaurant opens and operates a restaurant in New York.
C. A U.S. electronics company opens and operates a new factory in India.
D. A U.S. pension fund buys bonds issued by the Japanese government.
Answer: C. A U.S. electronics company opens and operates a new factory in India.
Explanation:
In Foreign direct investment, a international company owns and controls the affairs of a company in another country hence the term direct. This therefore is asking for which scenario shows a US company in control of a company in another country and that would be the U.S. electronics company opening and operating a new factory in India.
This will increase U.S. net capital outflow which is defined as the amount of money flowing out of the United States to be invested in another country. As the Electronics company had to set up in India, they invested in India thereby increasing U.S. net capital outflow.
high-end whole home electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is $310 per unit sold and reported a liability for estimated warranty costs $10.6 million at the beginning of this year. If during the current year, the company sold 59500 units for a total of $324 million and paid warranty claims of $12120000 on current and prior year sales, what amount of liability would the company report on its balance sheet at the end of the current year?
Answer:
$16,925,000
Explanation:
The company estimates that the warranty cost is $310 per units sold
The estimated warranty costs at the beginning of the year is $10,600,000
In the current year, the company sold 59,500 units
The company paid warranty claims of $12120000
Therefore, the amount of liability that should be reported at the end of the current year can be calculated as follows
= 10,600,000+(59,500×310)-$12,120,000
= $10,600,000+18,445,000 -$12,120,000
= $29,045,000-$12,120,000
= $16,925,000
Hence the amount of liability that should be reported on the balance sheet at the end of the current year is $16,925,000
What was the weighted average interest rate Colgate faced on its short-term borrowings in 2013? Enter with 1 decimal place and with % sign (Ex: 9.9%)
Answer:
The weighted average interest rate that Colgate faced on its short-term borrowings in 2013 was:
2.2%.
Explanation:
On page 62 of its 10-K annual report for the fiscal year ended December 31, 2013, it specifically reported that "the weighted-average interest rate on short-term borrowings of $13 in 2013 and $54 in 2012 included in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2013 and 2012 was 2.2% and 1.0%, respectively." To calculate the weighted-average interest rate, we multiply each loan amount by its interest rate to obtain the "per loan weight factor." Then add the per loan weight factors together. Add the loan amounts together. Divide the "total per loan weight factor" by the "total loan amount," and then multiply by 100 to calculate the weighted average.
Sally's Fries sells five large fries for every four small ones. A small fry sells for $2.00 with a variable cost of $0.25 . A large fry sells for with a variable cost of What is the weighted average contribution margin?
Answer:
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Explanation:
Sales proportion:
Large fries= 5/9= 0.56
Small fries= 4/9= 0.44
A small fry sells for $2.00 with a variable cost of $0.25.
We need to complete the information to calculate the weighted average contribution margin:
For example= A large fry sells for $2.9 with a variable cost of $0.4
To calculate the weighted-average contribution margin, we need to use the following formula:
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (0.56*2.9 + 0.44*2) - (0.56*0.4 + 0.44*0.25)
Weighted average contribution margin= 2.504 - 0.334
Weighted average contribution margin= $2.17
Prior to the merger, Firm A has $1,250 in total earnings with 750 shares outstanding at a market price per share of $42. Firm B has $740 in total earnings with 220 shares outstanding at $21 per share. Assume Firm A acquires Firm B via an exchange of stock of 0.5 share of A’s stock for each share of B's stock. Both A and B have no debt outstanding and the merger does not create any synergy. What will the earnings per share of Firm A be after the merger? A) $2.10 B) $1.67 C) $3.36 D) $2.05 E) $2.31
Answer:
E) $2.31
Explanation:
Shares offered to Firm B = Shares outstanding * 0.5
= 220 * 0.5
= 110 shares
Total shares of firm A after merger = Shares outstanding before merger + Shares offered to Firm B
= 750 + 110
= 860 shares
Total earnings of firm A after merger = $1,250 + 740
Total earnings of firm A after merger = $1,990
Earnings per share of firm A after merger = Total earnings of firm A after merger / Total shares of firm A after merger
Earnings per share of firm A after merger = $1,990 / 860
Earnings per share of firm A after merger = $2.31 per share
Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Connecticut, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase / (Decrease) Cash Accounts Receivable () Merchandise Inventory Plant and Equipment Accumulated DepreciationPlant and Equipment () () () Total Assets Additional information provided by the company includes the following: 1. Equipment was purchased for with cash. 2. Equipment with a cost of and accumulated depreciation of was sold for . What was the amount of net cash provided by (used for) investing activities?
Answer:
Net cash used by investing activities -$16,000
Explanation:
The computation of the amount of net cash provided or used by investing activities is shown below:
Equipment purchase for cash -$66,000
Proceeds from the sale of equipment $50,000
Net cash used by investing activities -$16,000
The purchase is a cash outflow so it is in negative sign while the sale is cash inflow so it is to be shown in a positive sign
Caterpillar,the manufacturer of tractors and other earthmoving equipment,has an extremely high market share,which means customers seek the dealers out regardless of where they are.There are approximately 50 Caterpillar dealers in the United States--one in each state.From this information,you can surmise that Caterpillar uses _____ distribution.
A) selective
B) premium
C) intensive
D) exclusive
E) inclusive
Answer: exclusive
Explanation:
From the information that is provided in the question, we can deduce that Caterpillar uses exclusive distribution. In exclusive distribution, the dealers are given an exclusive right whereby they are allowed to sell the products at a certain geographical location
Since we are told that the company has an extremely high market share,which means customers seek the dealers out regardless of where they are. Then the answer is exclusive distribution.
On October 17, Nikle Company purchased a building and a plot of land for $750,000.
The building was valued at $500,000 while the land carried a value of $250,000.
Nikle paid $300,000 down in cash and signed a note payable for the balance.
Prepare the journal entry for this transaction.
(If an amount box does not require an entry, leave it blank.)
Answer:
the journal entry for this transaction is :
Building $500,000 (debit)
Land $250,000 (debit)
Cash $300,000 (credit)
Note Payable $450,000 (credit)
Explanation:
Recognize separately the assets purchased as : Building $500,000 and Land $250,000 and also recognize the Liability - Note Payable to the amount of $450,000 - the balance remaining after a cash settlement of the purchase price of $300,000.
Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $213 per month plus $104 per job plus $23 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 22 jobs and 82 meals, but the actual activity was 27 jobs and 76 meals. The actual cost for catering supplies in March was $4,713. The spending variance for catering supplies in March would be closest to:
Answer:
$56 (Favorable)
Explanation:
Standard cost = Actual Quantity * Standard rate
Standard cost = Catering supplies cost + Actual number of jobs * Rate per job) + Actual number of meals * Rate per meal
Standard cost = {213 + (27 jobs * $104 per job) + (76 meals * $23 per job)
Standard cost = ($213 + $2,808) + $1,748
Standard cost = $3,021 + $1,748
Standard cost = $4,769
Spending variance = Actual cost - Standard cost
Spending variance = $4,713 - $4,769
Spending variance = $56 (Favorable)
Zhao Co. has fixed costs of $286,200. Its single product sells for $163 per unit, and variable costs are $110 per unit. Compute the level of sales in units needed to produce a target (pretax) income of $106,000.
Answer:
The level of sales in units is 7,400
Explanation:
The computation of the level of sales in units is shown below:
= (Fixed cost + target income) ÷ (Contribution margin per unit)
= ($286,200 + $106,000) ÷ ($163 per unit - $110 per unit)
= $392,200 ÷ $53 per unit
= 7,400 units
The Contribution margin per unit is
= Selling price per unit - variable cost per unit
Henec, the level of sales in units is 7,400
During February, assets increased by 87000 and liabilities increased by 31000 . Equity must have:___________.
a. increased by 56000
b. increased by 118000
c. decreased by 56000
d. decreased by 118000
Answer:
a. increased by $56,000
Explanation:
General accounting equation ;
Assets = Liabilities + Owners equity
Owners equity = Assets - Liabilities.
Therefore,
Increase in stockholder's equity
= $87,000 - $31,000
= $56,000
________ is the model in which an effective leader makes desirable rewards available, clarifies how employees can achieve objectives, and provides them support in doing so.
Answer:
House's path-goal model.
Explanation:
Robert House developed the theory of the objective-path, which is a theory that supports the servile leadership style, because House believed that the behavior of the leader is capable of directly interfering in the behavior of the collaborators, therefore, the leaders must be the biggest suppliers of essential support and resources for employees to carry out their work effectively.
He has developed 4 different leadership styles that leaders must have to help employees achieve their goals and objectives.
They are:
Directive, Supportive, Participative, Achievement-oriented.These four styles will provide the essential guidelines and conduct for being a servant and collaborative leader.